Resolução

Resolução da Assembleia da República n.º 196/2016

Aprova a Convenção entre a República Portuguesa e o Reino do Barém para Evitar a Dupla Tributação e Prevenir a Evasão Fiscal em Matéria de Impostos sobre o Rendimento, assinada em Manama, em 26 de maio de 2015

Capítulo I - Âmbito de aplicação da Convenção

Artigo 1.º

Pessoas abrangidas

A presente Convenção aplica-se às pessoas residentes de um ou de ambos os Estados Contratantes.

Artigo 2.º

Impostos abrangidos

1 -A presente Convenção aplica-se aos impostos sobre o rendimento exigidos em benefício de um Estado Contratante, ou das suas subdivisões políticas ou administrativas ou autarquias locais, independentemente do sistema usado para a sua cobrança.
2 -São considerados impostos sobre o rendimento todos os impostos incidentes sobre o rendimento total ou sobre elementos do rendimento, incluindo os impostos sobre os ganhos derivados da alienação de bens mobiliários ou imobiliários, os impostos sobre o montante global dos vencimentos ou salários pagos pelas empresas, bem como os impostos sobre as mais-valias.
3 -Os impostos atuais a que a presente Convenção se aplica são, nomeadamente:
1. a)No Barém, o imposto sobre o rendimento devido nos termos do Decreto Amiri n.º 22/1979;
  (doravante designado por «imposto do Barém»);
2. b)Em Portugal:
  1. i)O imposto sobre o rendimento das pessoas singulares (IRS);
  2. ii)O imposto sobre o rendimento das pessoas coletivas (IRC); e
  3. iii)Os adicionais ao imposto sobre o rendimento das pessoas coletivas (derramas);
    (doravante designados por «imposto português»).
4 -A Convenção será também aplicável aos impostos de natureza idêntica ou substancialmente similar que entrem em vigor posteriormente à data da assinatura da Convenção e que venham a acrescer aos atuais ou a substituí-los. As autoridades competentes dos Estados Contratantes comunicarão uma à outra as modificações significativas introduzidas nas respetivas legislações fiscais.

Capítulo II - Definições

Artigo 3.º

Definições gerais

1 -Para efeitos da presente Convenção, a não ser que o contexto exija interpretação diferente:
1. a)O termo «Barém» designa o território do Reino do Barém, bem como as zonas marítimas, o leito do mar e o seu subsolo onde o Barém exerça, de acordo com o direito internacional, direitos de soberania e jurisdição;
2. b)O termo «Portugal», quando usado em sentido geográfico, compreende o território da República Portuguesa, em conformidade com o direito internacional e a legislação portuguesa, incluindo o seu mar territorial, bem como as zonas marítimas adjacentes ao limite exterior do mar territorial, compreendendo o leito do mar e o seu subsolo, onde a República Portuguesa exerça direitos de soberania ou jurisdição;
3. c)As expressões «um Estado Contratante» e «o outro Estado Contratante» designam Portugal ou Barém, consoante resulte do contexto;
4. d)O termo «imposto» designa imposto português ou imposto do Barém, consoante resulte do contexto;
5. e)O termo «pessoa» compreende uma pessoa singular, uma sociedade ou qualquer outro agrupamento de pessoas;
6. f)O termo «sociedade» designa qualquer pessoa coletiva ou qualquer entidade tratada como pessoa coletiva para fins tributários ou qualquer outra entidade constituída ou reconhecida como pessoa coletiva nos termos da lei de um ou do outro Estado Contratante;
7. g)As expressões «empresa de um Estado Contratante» e «empresa do outro Estado Contratante» designam, respetivamente, uma empresa explorada por um residente de um Estado Contratante e uma empresa explorada por um residente do outro Estado Contratante;
8. h)A expressão «tráfego internacional» designa qualquer transporte por navio ou aeronave explorados por uma empresa cuja direção efetiva esteja situada num Estado Contratante, exceto se o navio ou aeronave forem explorados somente entre locais situados no outro Estado Contratante;
9. i)A expressão «autoridade competente» designa:
  1. i)Em relação ao Barém, o Ministro das Finanças ou o seu representante autorizado; e
  2. ii)Em relação a Portugal, o Ministro das Finanças, o Diretor-Geral da Autoridade Tributária e Aduaneira ou os seus representantes autorizados;
10. j)O termo «nacional», relativamente a um Estado Contratante, designa:
  1. i)Qualquer pessoa singular que tenha a nacionalidade desse Estado Contratante; e
  2. ii)Qualquer pessoa coletiva, sociedade de pessoas ou associação constituída de harmonia com a legislação em vigor nesse Estado Contratante.
2 -No que respeita à aplicação da Convenção, num dado momento, por um Estado Contratante, qualquer termo ou expressão nela não definido terá, salvo se o contexto exigir interpretação diferente, o significado que lhe for atribuído nesse momento pela legislação desse Estado que regula os impostos a que a Convenção se aplica, prevalecendo a interpretação resultante da legislação fiscal aplicável sobre a que decorra de outra legislação desse Estado.

Artigo 4.º

Residente

1 -Para efeitos da presente Convenção, a expressão «residente de um Estado Contratante» designa:
1. a)No caso do Barém, qualquer pessoa singular que tenha a sua habitação permanente, o seu centro de interesses vitais ou que permaneça habitualmente no Barém e uma sociedade constituída ou com o seu local de direção efetiva no Barém; e
2. b)No caso de Portugal, qualquer pessoa que, nos termos da legislação de Portugal, esteja aí sujeita a imposto em razão da sua residência, do local de direção, do local da constituição ou de qualquer outro critério de natureza similar;
não incluindo, porém, qualquer pessoa que esteja sujeita a imposto em qualquer um dos Estados Contratantes apenas relativamente a rendimentos de fontes localizadas nesse Estado Contratante. A expressão «residente de um Estado Contratante» inclui, igualmente, esse Estado e as suas subdivisões políticas ou administrativas e autarquias locais.
2 -Quando, por força do disposto no n.º 1, uma pessoa singular for residente de ambos os Estados Contratantes, a situação será resolvida do seguinte modo:
1. a)Será considerada residente apenas do Estado em que tenha uma habitação permanente à sua disposição; se tiver uma habitação permanente à sua disposição em ambos os Estados, será considerada residente apenas do Estado com o qual as suas relações pessoais e económicas sejam mais estreitas (centro de interesses vitais);
2. b)Se o Estado em que tem o centro de interesses vitais não puder ser determinado, ou se não tiver uma habitação permanente à sua disposição em nenhum dos Estados, será considerada residente apenas do Estado em que permaneça habitualmente;
3. c)Se permanecer habitualmente em ambos os Estados, ou se não permanecer habitualmente em nenhum deles, será considerada residente apenas do Estado de que seja nacional;
4. d)Se for nacional de ambos os Estados, ou não for nacional de nenhum deles, as autoridades competentes dos Estados Contratantes resolverão o caso de comum acordo.
3 -Quando, por força do disposto no n.º 1, uma pessoa, que não seja uma pessoa singular, for residente de ambos os Estados Contratantes, será considerada residente apenas do Estado em que estiver situada a sua direção efetiva.

Artigo 5.º

Estabelecimento estável

1 -Para efeitos da presente Convenção, a expressão «estabelecimento estável» designa uma instalação fixa, através da qual a empresa exerce toda ou parte da sua atividade.
2 -A expressão «estabelecimento estável» compreende, nomeadamente:
1. a)Um local de direção;
2. b)Uma sucursal;
3. c)Um escritório;
4. d)Uma fábrica;
5. e)Uma oficina; e
6. f)Uma mina, um poço de petróleo ou gás, uma pedreira ou qualquer outro local de extração de recursos naturais.
3 -Um local ou um estaleiro de construção ou um projeto de construção ou instalação só constitui um estabelecimento estável se a sua duração exceder 12 meses.
4 -Não obstante o disposto no presente artigo, considera-se que uma empresa possui um estabelecimento estável num Estado Contratante e que exerce uma atividade através desse estabelecimento estável nesse Estado se, durante um período superior a 90 dias, exercer diretamente atividades de prospeção ou de produção de crude ou de outros hidrocarbonetos naturais extraídos do solo nesse Estado, por sua própria conta, ou efetuar a refinação do crude, que possui ou possuído por outros, nas suas instalações nesse Estado.
5 -Não obstante as disposições anteriores deste artigo, a expressão «estabelecimento estável» não compreende:
1. a)As instalações utilizadas unicamente para armazenar, expor ou entregar bens ou mercadorias pertencentes à empresa;
2. b)Um depósito de bens ou mercadorias pertencentes à empresa mantido unicamente para os armazenar, expor ou entregar;
3. c)Um depósito de bens ou mercadorias pertencentes à empresa mantido unicamente para serem transformados por outra empresa;
4. d)Uma instalação fixa mantida unicamente para comprar bens ou mercadorias ou para reunir informações para a empresa;
5. e)Uma instalação fixa mantida unicamente para o exercício, para a empresa, de qualquer outra atividade de carácter preparatório ou auxiliar;
6. f)Uma instalação fixa mantida unicamente para o exercício de qualquer combinação das atividades referidas nas alíneas a) a e), desde que a atividade de conjunto da instalação fixa resultante desta combinação seja de carácter preparatório ou auxiliar.
6 -Não obstante o disposto nos n.os 1 e 2, quando uma pessoa - que não seja um agente independente, a quem é aplicável o disposto no n.º 7 - atue por conta de uma empresa e tenha, e habitualmente exerça num Estado Contratante poderes para celebrar contratos em nome da empresa, considerar-se-á que esta empresa possui um estabelecimento estável nesse Estado relativamente a quaisquer atividades que essa pessoa exerça para a empresa, salvo se as atividades de tal pessoa se limitarem às indicadas no n.º 4, as quais, caso fossem exercidas através de uma instalação fixa, não permitiriam considerar esta instalação fixa como sendo um estabelecimento estável, de acordo com o disposto nesse número.
7 -Não se considera que uma empresa possui um estabelecimento estável num Estado Contratante pelo simples facto de exercer a sua atividade nesse Estado por intermédio de um corretor, de um comissário-geral ou de qualquer outro agente independente, desde que essas pessoas atuem no âmbito normal da sua atividade.
8 -O facto de uma sociedade residente de um Estado Contratante controlar ou ser controlada por uma sociedade residente do outro Estado Contratante ou que exerce a sua atividade nesse outro Estado (quer seja através de um estabelecimento estável, quer de outro modo) não é, só por si, bastante para fazer de qualquer dessas sociedades estabelecimento estável da outra.

Capítulo III - Tributação do rendimento

Artigo 6.º

Rendimentos de bens imobiliários

1 -Os rendimentos que um residente de um Estado Contratante aufira de bens imobiliários (incluindo os rendimentos das explorações agrícolas ou florestais) situados no outro Estado Contratante podem ser tributados nesse outro Estado.
2 -A expressão «bens imobiliários» terá o significado que lhe for atribuído pela legislação do Estado Contratante em que tais bens estiverem situados. A expressão compreende sempre os bens acessórios dos bens imobiliários, o gado e o equipamento das explorações agrícolas e florestais, os direitos a que se apliquem as disposições do direito privado relativas à propriedade de bens imobiliários, o usufruto dos bens imobiliários e os direitos a retribuições variáveis ou fixas pela exploração ou pela concessão da exploração de jazigos minerais, fontes e outros recursos naturais; os navios e aeronaves não são considerados bens imobiliários.
3 -O disposto no n.º 1 aplica-se aos rendimentos derivados da utilização direta, do arrendamento ou de qualquer outra forma de utilização de bens imobiliários.
4 -O disposto nos n.os 1 e 3 aplica-se, igualmente, aos rendimentos provenientes dos bens imobiliários de uma empresa e aos rendimentos dos bens imobiliários utilizados no exercício de profissões independentes.
5 -As disposições anteriores aplicam-se igualmente aos rendimentos provenientes de bens mobiliários ou aos rendimentos decorrentes de prestação de serviços, em conexão com o uso ou a concessão do uso dos bens imobiliários, que, de acordo com a legislação fiscal do Estado Contratante em que tais bens se encontram situados, integrem os rendimentos provenientes dos bens imobiliários.

Artigo 7.º

Lucros das empresas

1 -Os lucros de uma empresa de um Estado Contratante só podem ser tributados nesse Estado, salvo se a empresa exercer a sua atividade no outro Estado Contratante através de um estabelecimento estável aí situado. Se a empresa exercer a sua atividade deste modo, os seus lucros podem ser tributados no outro Estado, mas unicamente na medida em que sejam imputáveis a esse estabelecimento estável.
2 -Com ressalva do disposto no n.º 3 do presente artigo, quando uma empresa de um Estado Contratante exerça a sua atividade no outro Estado Contratante através de um estabelecimento estável aí situado, serão imputados, em cada Estado Contratante, a esse estabelecimento estável os lucros que este obteria se fosse uma empresa distinta e separada que exercesse as mesmas atividades ou atividades similares, nas mesmas condições ou em condições similares, e tratasse com absoluta independência com a empresa de que é estabelecimento estável.
3 -Na determinação do lucro de um estabelecimento estável, será permitida a dedução dos encargos suportados na realização dos fins prosseguidos por esse estabelecimento estável, incluindo os encargos de direção e os encargos gerais de administração suportados com o fim referido, quer no Estado em que esse estabelecimento estável estiver situado quer fora dele.
4 -Se num Estado Contratante for habitual determinar os lucros imputáveis a um estabelecimento estável com base numa repartição dos lucros totais da empresa entre as suas diversas partes, o disposto no n.º 2 não impedirá esse Estado Contratante de determinar os lucros tributáveis de acordo com a repartição habitual; o método de repartição adotado deve, no entanto, conduzir a um resultado conforme com os princípios enunciados neste artigo.
5 -Nenhum lucro será imputado a um estabelecimento estável pela mera compra, por esse estabelecimento estável, de bens ou de mercadorias para a empresa.
6 -Para efeitos do disposto nos números anteriores, os lucros a imputar ao estabelecimento estável serão determinados, em cada ano, utilizando o mesmo método, salvo se existirem motivos válidos e suficientes para proceder de forma diferente.
7 -Quando os lucros compreendam elementos do rendimento tratados especialmente noutros artigos da presente Convenção, as respetivas disposições não serão afetadas pelo disposto no presente artigo.

Artigo 8.º

Transporte marítimo e aéreo

1 -Os lucros provenientes da exploração de navios ou aeronaves no tráfego internacional só podem ser tributados no Estado Contratante em que estiver situada a direção efetiva da empresa.
2 -Se a direção efetiva de uma empresa de transporte marítimo se situar a bordo de um navio, considera-se situada no Estado Contratante em que se encontra o porto onde esse navio estiver registado ou, na falta de porto de registo, no Estado Contratante de que é residente a pessoa que explora o navio.
3 -O disposto no n.º 1 é aplicável igualmente aos lucros provenientes da participação num pool, numa exploração em comum ou num organismo internacional de exploração.

Artigo 9.º

Empresas associadas

1 -Quando:
1. a)Uma empresa de um Estado Contratante participe, direta ou indiretamente, na direção, no controlo ou no capital de uma empresa do outro Estado Contratante; ou
2. b)As mesmas pessoas participem, direta ou indiretamente, na direção, no controlo ou no capital de uma empresa de um Estado Contratante e de uma empresa do outro Estado Contratante;
e, em ambos os casos, as duas empresas, nas suas relações comerciais ou financeiras, estiverem ligadas por condições aceites ou impostas que difiram das que teriam sido estabelecidas entre empresas independentes, os lucros que seriam obtidos por uma das empresas se essas condições não existissem, mas que, por causa dessas condições, não foram obtidos, podem ser incluídos nos lucros dessa empresa e tributados em conformidade.
2 -Quando um Estado Contratante inclua nos lucros de uma empresa desse Estado - e tribute nessa conformidade - os lucros pelos quais uma empresa do outro Estado Contratante foi tributada nesse outro Estado, e os lucros incluídos deste modo constituam lucros que teriam sido obtidos pela empresa do primeiro Estado mencionado, se as condições estabelecidas entre as duas empresas tivessem sido as condições que teriam sido estabelecidas entre empresas independentes, esse outro Estado, se concordar que o ajustamento efetuado pelo primeiro Estado mencionado se justifica, tanto em termos de princípio como em termos do respetivo montante, procederá ao ajustamento adequado do montante do imposto aí cobrado sobre os referidos lucros. Na determinação deste ajustamento serão tidas em consideração as outras disposições da presente Convenção e, se necessário, as autoridades competentes dos Estados Contratantes consultar-se-ão.

Artigo 10.º

Dividendos

1 -Os dividendos pagos por uma sociedade residente de um Estado Contratante a um residente do outro Estado Contratante podem ser tributados nesse outro Estado.
2 -No entanto, esses dividendos podem ser igualmente tributados no Estado Contratante de que é residente a sociedade que paga os dividendos e de acordo com a legislação desse Estado, mas se o beneficiário efetivo dos dividendos for um residente do outro Estado Contratante, o imposto assim estabelecido não pode exceder:
1. a)10 % do montante bruto dos dividendos, se o beneficiário efetivo for uma sociedade (com exceção das sociedades de pessoas) que detenha, diretamente, pelo menos 25 % do capital da sociedade que paga os dividendos;
2. b)15 % do montante bruto dos dividendos, nos restantes casos.
  As autoridades competentes dos Estados Contratantes estabelecerão, de comum acordo, a forma de aplicar estes limites. Este número não afeta a tributação da sociedade pelos lucros a partir dos quais os dividendos são pagos.
3 -O termo «dividendos», usado neste artigo, designa os rendimentos provenientes de ações, ações ou bónus de fruição, partes de minas, partes de fundador ou outros direitos, com exceção dos créditos, que permitam participar nos lucros, assim como os rendimentos derivados de outras partes sociais sujeitos ao mesmo regime fiscal que os rendimentos de ações pela legislação do Estado de que é residente a sociedade que os distribui. O termo inclui, igualmente, os lucros atribuídos nos termos de um acordo de participação nos lucros («associação em participação»).
4 -O disposto nos n.os 1 e 2 não é aplicável se o beneficiário efetivo dos dividendos, residente de um Estado Contratante, exercer uma atividade no outro Estado Contratante, de que é residente a sociedade que paga os dividendos, através de um estabelecimento estável aí situado, ou exercer nesse outro Estado uma profissão independente, através de uma instalação fixa aí situada, e a participação relativamente à qual os dividendos são pagos estiver efetivamente ligada a esse estabelecimento estável ou a essa instalação fixa. Nesse caso, será aplicável o disposto no artigo 7.º ou no artigo 14.º, consoante o caso.
5 -Quando uma sociedade residente de um Estado Contratante obtiver lucros ou rendimentos provenientes do outro Estado Contratante, esse outro Estado não poderá exigir qualquer imposto sobre os dividendos pagos pela sociedade, exceto na medida em que esses dividendos sejam pagos a um residente desse outro Estado ou na medida em que a participação em relação à qual os dividendos são pagos esteja efetivamente ligada a um estabelecimento estável ou a uma instalação fixa situados nesse outro Estado, nem poderá sujeitar os lucros não distribuídos da sociedade a um imposto sobre os lucros não distribuídos, mesmo que os dividendos pagos ou os lucros não distribuídos sejam constituídos, total ou parcialmente, por lucros ou rendimentos provenientes desse outro Estado.

Artigo 11.º

Rendimentos de créditos

1 -Os rendimentos de créditos provenientes de um Estado Contratante e pagos a um residente do outro Estado Contratante podem ser tributados nesse outro Estado.
2 -No entanto, esses rendimentos podem ser igualmente tributados no Estado Contratante de que provêm e de acordo com a legislação desse Estado, mas se o beneficiário efetivo dos rendimentos for um residente do outro Estado Contratante, o imposto assim estabelecido não pode exceder 10 % do montante bruto dos rendimentos. As autoridades competentes dos Estados Contratantes estabelecerão, de comum acordo, a forma de aplicar este limite.
3 -A expressão «rendimentos de créditos» ou «rendimentos», usada no presente artigo, designa os rendimentos de créditos de qualquer natureza, com ou sem garantia hipotecária e com ou sem direito a participar nos lucros do devedor, e, nomeadamente, os rendimentos da dívida pública e de outros títulos de crédito, incluindo prémios relativos a esses títulos. Para efeitos deste artigo, não se consideram rendimentos as penalizações por pagamento tardio.
4 -O disposto nos n.os 1 e 2 não é aplicável se o beneficiário efetivo dos rendimentos, residente de um Estado Contratante, exercer uma atividade no outro Estado Contratante de que provêm os rendimentos, através de um estabelecimento estável aí situado, ou exercer nesse outro Estado uma profissão independente, através de uma instalação fixa aí situada, e o crédito relativamente ao qual os rendimentos são pagos estiver efetivamente ligado a esse estabelecimento estável ou a essa instalação fixa. Nesse caso, será aplicável o disposto no artigo 7.º ou no artigo 14.º, consoante o caso.
5 -Os rendimentos consideram-se provenientes de um Estado Contratante quando o devedor for um residente desse Estado. Todavia, quando o devedor dos rendimentos, seja ou não residente de um Estado Contratante, dispuser num Estado Contratante de um estabelecimento estável ou de uma instalação fixa em ligação com os quais haja sido contraída a obrigação pela qual os rendimentos são pagos, e esse estabelecimento estável ou essa instalação fixa suportem o pagamento desses rendimentos, estes são considerados provenientes do Estado em que estiver situado o estabelecimento estável ou a instalação fixa.
6 -Quando, por existirem relações especiais entre o devedor e o beneficiário efetivo ou entre ambos e qualquer outra pessoa, o montante dos rendimentos, tendo em conta o crédito pelo qual são pagos, exceder o montante que seria acordado entre o devedor e o beneficiário efetivo na ausência de tais relações, o disposto no presente artigo aplica-se apenas a este último montante. Nesse caso, a parte excedente continua a poder ser tributada de acordo com a legislação de cada Estado Contratante, tendo em conta as restantes disposições da presente Convenção.

Artigo 12.º

Royalties

1 -Os royalties provenientes de um Estado Contratante e pagos a um residente do outro Estado Contratante podem ser tributados nesse outro Estado.
2 -No entanto, esses royalties podem ser igualmente tributados no Estado Contratante de que provêm e de acordo com a legislação desse Estado, mas se o beneficiário efetivo dos royalties for um residente do outro Estado Contratante, o imposto assim estabelecido não pode exceder 5 % do montante bruto dos royalties. As autoridades competentes dos Estados Contratantes estabelecerão, de comum acordo, a forma de aplicar este limite.
3 -O termo «royalties», usado no presente artigo, designa as retribuições de qualquer natureza pagas pelo uso, ou pela concessão do uso, de um direito de autor sobre uma obra literária, artística ou científica, incluindo filmes cinematográficos, uma patente, uma marca de fabrico ou de comércio, um desenho ou modelo, um plano, uma fórmula secreta ou um processo secreto, ou por informações respeitantes a uma experiência adquirida no sector industrial, comercial ou científico.
4 -O disposto nos n.os 1 e 2 não é aplicável, se o beneficiário efetivo dos royalties, residente de um Estado Contratante, exercer uma atividade no outro Estado Contratante de que provêm os royalties, através de um estabelecimento estável aí situado, ou exercer nesse outro Estado uma profissão independente, através de uma instalação fixa aí situada, e o direito ou o bem relativamente ao qual os royalties são pagos estiver efetivamente ligado a esse estabelecimento estável ou a essa instalação fixa. Nesse caso, será aplicável o disposto no artigo 7.º ou no artigo 14.º, consoante o caso.
5 -Os royalties consideram-se provenientes de um Estado Contratante quando o devedor for um residente desse Estado. Todavia, quando o devedor dos royalties, seja ou não residente de um Estado Contratante, possuir num Estado Contratante um estabelecimento estável ou uma instalação fixa em relação aos quais haja sido contraída a obrigação pela qual os royalties são pagos, e esse estabelecimento estável ou essa instalação fixa suportem o pagamento desses royalties, estes são considerados provenientes do Estado em que estiver situado o estabelecimento estável ou a instalação fixa.
6 -Quando, por existirem relações especiais entre o devedor e o beneficiário efetivo ou entre ambos e qualquer outra pessoa, o montante dos royalties, tendo em conta o uso, o direito ou as informações pelos quais são pagos, exceder o montante que seria acordado entre o devedor e o beneficiário efetivo na ausência de tais relações, o disposto no presente artigo aplica-se apenas a este último montante. Nesse caso, a parte excedente continua a poder ser tributada de acordo com a legislação de cada Estado Contratante, tendo em conta as restantes disposições da presente Convenção.

Artigo 13.º

Mais-valias

1 -Os ganhos que um residente de um Estado Contratante aufira da alienação de bens imobiliários referidos no artigo 6.º e situados no outro Estado Contratante podem ser tributados nesse outro Estado.
2 -Os ganhos provenientes da alienação de bens mobiliários que façam parte do ativo de um estabelecimento estável que uma empresa de um Estado Contratante possua no outro Estado Contratante, ou de bens mobiliários afetos a uma instalação fixa de que um residente de um Estado Contratante disponha no outro Estado Contratante para o exercício de uma profissão independente, incluindo os ganhos provenientes da alienação desse estabelecimento estável (isolado ou com o conjunto da empresa) ou dessa instalação fixa, podem ser tributados nesse outro Estado.
3 -Os ganhos provenientes da alienação de navios ou aeronaves explorados no tráfego internacional, ou de bens mobiliários afetos à exploração desses navios ou aeronaves, só podem ser tributados no Estado Contratante em que estiver situada a direção efetiva da empresa.
4 -Os ganhos que um residente de um Estado Contratante aufira da alienação de partes de capital ou de direitos similares, cujo valor resulte, direta ou indiretamente, em mais de 50 %, de bens imobiliários situados no outro Estado Contratante podem ser tributados nesse outro Estado.
5 -Os ganhos provenientes da alienação de quaisquer outros bens diferentes dos mencionados nos n.os 1, 2, 3 e 4 só podem ser tributados no Estado Contratante de que o alienante é residente.

Artigo 14.º

Profissões independentes

1 -Os rendimentos auferidos por um residente de um Estado Contratante pelo exercício de uma profissão liberal ou de outras atividades de carácter independente só podem ser tributados nesse Estado, salvo se esse residente dispuser, de forma habitual, no outro Estado Contratante, de uma instalação fixa para o exercício das suas atividades. Neste caso, tais rendimentos podem ser tributados no outro Estado Contratante, mas unicamente na medida em que sejam imputáveis a essa instalação fixa.
2 -A expressão «profissão liberal» abrange, em especial, as atividades independentes de carácter científico, literário, artístico, educativo ou pedagógico, bem como as atividades independentes de médicos, advogados, engenheiros, arquitetos, dentistas e contabilistas.

Artigo 15.º

Profissões dependentes

1 -Com ressalva do disposto nos artigos 16.º, 18.º, 19.º, 20.º e 21.º, os salários, vencimentos e outras remunerações similares provenientes de um emprego, auferidos por um residente de um Estado Contratante, só podem ser tributados nesse Estado, salvo se o emprego for exercido no outro Estado Contratante. Se o emprego for aí exercido, as remunerações dele provenientes podem ser tributadas nesse outro Estado.
2 -Não obstante o disposto no n.º 1, as remunerações auferidas por um residente de um Estado Contratante provenientes de um emprego exercido no outro Estado Contratante são tributáveis exclusivamente no primeiro Estado mencionado se:
1. a)O beneficiário permanecer no outro Estado durante um período ou períodos que não excedam, no total, 183 dias em qualquer período de 12 meses, com início ou termo no ano fiscal em causa; e
2. b)As remunerações forem pagas por uma entidade patronal ou por conta de uma entidade patronal que não seja residente do outro Estado; e
3. c)As remunerações não forem suportadas por um estabelecimento estável ou por uma instalação fixa que a entidade patronal possua no outro Estado.
3 -Não obstante o disposto nos números anteriores do presente artigo, as remunerações provenientes de um emprego exercido a bordo de um navio ou de uma aeronave explorados no tráfego internacional podem ser tributadas no Estado Contratante em que estiver situada a direção efetiva da empresa.

Artigo 16.º

Percentagens de membros de conselhos

As percentagens, senhas de presença e outras remunerações similares obtidas por um residente de um Estado Contratante na qualidade de membro do conselho de administração, do conselho fiscal ou de outro órgão similar de uma sociedade residente do outro Estado Contratante podem ser tributadas nesse outro Estado.

Artigo 17.º

Artistas e desportistas

1 -Não obstante o disposto nos artigos 14.º e 15.º, os rendimentos auferidos por um residente de um Estado Contratante na qualidade de profissional de espetáculos, tal como artista de teatro, cinema, rádio ou televisão, ou músico, bem como de desportista, provenientes das suas atividades pessoais exercidas nessa qualidade no outro Estado Contratante podem ser tributados nesse outro Estado.
2 -Não obstante o disposto nos artigos 7.º, 14.º e 15.º, os rendimentos da atividade exercida pessoalmente pelos profissionais de espetáculos ou desportistas nessa qualidade, mas atribuídos a uma outra pessoa, podem ser tributados no Estado Contratante em que são exercidas essas atividades dos profissionais de espetáculos ou desportistas.

Artigo 18.º

Pensões

Com ressalva do disposto no n.º 2 do artigo 19.º, as pensões e outras remunerações similares pagas a um residente de um Estado Contratante em consequência de um emprego anterior só podem ser tributadas nesse Estado.

Artigo 19.º

Remunerações públicas

1 -Os salários, vencimentos e outras remunerações similares pagos por um Estado Contratante ou por uma das suas subdivisões políticas ou administrativas ou autarquias locais a uma pessoa singular, em consequência de serviços prestados a esse Estado ou a essa subdivisão ou autarquia, só podem ser tributados nesse Estado. Contudo, tais salários, vencimentos e outras remunerações similares são tributáveis exclusivamente no outro Estado Contratante, se os serviços forem prestados nesse Estado e se a pessoa singular for um residente desse Estado que:
1. a)Seja seu nacional; ou
2. b)Não se tenha tornado seu residente unicamente com o objetivo de prestar os ditos serviços.
2 -Não obstante o disposto no n.º 1, as pensões e outras remunerações similares pagas por um Estado Contratante ou por uma sua subdivisão política ou administrativa ou autarquia local, quer diretamente, quer através de fundos por eles constituídos, a uma pessoa singular, em consequência de serviços prestados a esse Estado ou a essa subdivisão ou autarquia, só podem ser tributadas nesse Estado. Contudo, tais pensões e outras remunerações similares são tributáveis exclusivamente no outro Estado Contratante se a pessoa singular for um residente e um nacional desse Estado.
3 -O disposto nos artigos 15.º, 16.º, 17.º e 18.º aplica-se aos salários, vencimentos, pensões e outras remunerações similares pagos em consequência de serviços prestados em conexão com uma atividade empresarial exercida por um Estado Contratante ou por uma das suas subdivisões políticas ou administrativas ou autarquias locais.

Artigo 20.º

Professores e investigadores

Uma pessoa singular que seja, ou tenha sido, residente de um Estado Contratante imediatamente antes de se deslocar ao outro Estado Contratante, com o objetivo exclusivo de lecionar ou efetuar investigação científica numa universidade, colégio, escola ou outra instituição de ensino ou de investigação científica similar, reconhecida como não lucrativa pelo Governo desse outro Estado, ou no âmbito de um programa oficial de intercâmbio cultural, e que permaneça nesse outro Estado durante um período que não exceda dois anos a contar da data da sua primeira chegada a esse Estado Contratante, fica isenta de imposto nesse outro Estado relativamente às remunerações auferidas em razão desse ensino ou investigação.

Artigo 21.º

Estudantes

As importâncias que um estudante ou um estagiário que é, ou tenha sido, imediatamente antes da sua permanência num Estado Contratante, residente do outro Estado Contratante, e cuja permanência no primeiro Estado mencionado tenha como único fim aí prosseguir os seus estudos ou a sua formação, receba para fazer face às despesas com a sua manutenção, estudos ou formação, não são tributadas nesse Estado, desde que provenham de fontes situadas fora desse Estado.

Artigo 22.º

Outros rendimentos

1 -Os elementos do rendimento de um residente de um Estado Contratante, donde quer que provenham, não tratados nos artigos anteriores da presente Convenção, só podem ser tributados nesse Estado.
2 -O disposto no n.º 1 não se aplica aos rendimentos que não sejam rendimentos de bens imobiliários, tal como definidos no n.º 2 do artigo 6.º, se o beneficiário desses rendimentos, sendo residente de um Estado Contratante, exercer no outro Estado Contratante uma atividade empresarial, através de um estabelecimento estável nele situado, ou exercer nesse outro Estado uma profissão independente, através de uma instalação fixa nele situada, estando o direito ou o bem em relação ao qual os rendimentos são pagos efetivamente ligado a esse estabelecimento estável ou instalação fixa. Nesse caso, será aplicável o disposto no artigo 7.º ou no artigo 14.º, consoante o caso.
3 -Quando, por existirem relações especiais entre a pessoa mencionada no n.º 1 e qualquer outra pessoa ou entre ambas e uma terceira pessoa, o montante dos rendimentos referidos no n.º 1 exceder o montante (se existente) que seria acordado entre as ditas pessoas na ausência de tais relações, o disposto no presente artigo aplica-se apenas a este último montante. Nesse caso, a parte excedente continua a poder ser tributada de acordo com a legislação de cada Estado Contratante, tendo em conta as restantes disposições aplicáveis da presente Convenção.

Capítulo IV - Métodos de eliminação da dupla tributação

Artigo 23.º

Eliminação da dupla tributação

1 -No Barém, a dupla tributação será eliminada do seguinte modo:
Quando um residente do Barém aufira rendimentos que, de acordo com o disposto na presente Convenção, possam ser tributados em Portugal, o Barém permitirá a dedução ao imposto sobre o rendimento desse residente de uma importância igual ao imposto sobre o rendimento pago em Portugal. A importância deduzida não poderá, contudo, exceder a fração do imposto sobre o rendimento, calculado antes da dedução, correspondente aos rendimentos que possam ser tributados em Portugal.
2 -Em Portugal, a dupla tributação será eliminada do seguinte modo:
Quando um residente de Portugal aufira rendimentos que, de acordo com o disposto na presente Convenção, possam ser tributados no Barém, Portugal permitirá a dedução ao imposto sobre o rendimento desse residente de uma importância igual ao imposto sobre o rendimento pago no Barém. A importância deduzida não poderá, contudo, exceder a fração do imposto sobre o rendimento, calculado antes da dedução, correspondente aos rendimentos que possam ser tributados no Barém.
3 -Quando, de acordo com o disposto na presente Convenção, os rendimentos auferidos por um residente de um Estado Contratante estejam isentos de imposto nesse Estado, ao calcular o quantitativo do imposto sobre os restantes rendimentos desse residente, esse Estado poderá, contudo, ter em conta os rendimentos isentos.

Capítulo V - Disposições especiais

Artigo 24.º

Não discriminação

1 -Os nacionais de um Estado Contratante não ficarão sujeitos no outro Estado Contratante a qualquer tributação ou obrigação conexa diferentes ou mais gravosas do que aquelas a que estejam ou possam estar sujeitos os nacionais desse outro Estado que se encontrem nas mesmas circunstâncias, em particular no que se refere à residência. Não obstante o estabelecido no artigo 1.º, o disposto no presente número aplicar-se-á também às pessoas que não são residentes de um ou de ambos os Estados Contratantes.
2 -A tributação de um estabelecimento estável que uma empresa de um Estado Contratante possua no outro Estado Contratante não será nesse outro Estado menos favorável do que a das empresas desse outro Estado que exerçam as mesmas atividades. Esta disposição não poderá ser interpretada no sentido de obrigar um Estado Contratante a conceder aos residentes do outro Estado Contratante quaisquer deduções pessoais, abatimentos e reduções fiscais concedidos em função do estado civil ou de encargos familiares aos seus próprios residentes.
3 -Salvo se for aplicável o disposto no n.º 1 do artigo 9.º, no n.º 6 do artigo 11.º ou no n.º 6 do artigo 12.º, os rendimentos de créditos, royalties ou outras importâncias, pagos por uma empresa de um Estado Contratante a um residente do outro Estado Contratante serão dedutíveis, para efeitos da determinação do lucro tributável dessa empresa, nas mesmas condições, como se fossem pagos a um residente do primeiro Estado mencionado.
4 -As empresas de um Estado Contratante cujo capital seja detido ou controlado, no todo ou em parte, direta ou indiretamente, por um ou mais residentes do outro Estado Contratante não ficarão sujeitas, no primeiro Estado mencionado, a qualquer tributação ou obrigação conexa diferentes ou mais gravosas do que aquelas a que estejam ou possam estar sujeitas empresas similares do primeiro Estado mencionado.
5 -Não obstante o disposto no artigo 2.º, as disposições do presente artigo aplicar-se-ão aos impostos de qualquer natureza ou denominação.

Artigo 25.º

Procedimento amigável

1 -Quando uma pessoa considerar que as medidas tomadas por um Estado Contratante ou por ambos os Estados Contratantes conduzem ou poderão conduzir, em relação a si, a uma tributação não conforme com o disposto na presente Convenção, poderá, independentemente dos recursos estabelecidos pela legislação nacional desses Estados, submeter o seu caso à autoridade competente do Estado Contratante de que é residente ou, se o seu caso estiver compreendido no n.º 1 do artigo 24.º, à autoridade competente do Estado Contratante de que é nacional. O caso deverá ser apresentado dentro de três anos a contar da data da primeira comunicação da medida que der causa à tributação não conforme com o disposto na Convenção.
2 -Se a reclamação lhe parecer fundada mas não estiver em condições de, por si só, lhe dar uma solução satisfatória, a autoridade competente envidará todos os esforços para resolver a questão através de acordo amigável com a autoridade competente do outro Estado Contratante, a fim de evitar a tributação não conforme com o disposto na presente Convenção. O acordo alcançado será aplicado independentemente dos prazos estabelecidos na legislação interna dos Estados Contratantes.
3 -As autoridades competentes dos Estados Contratantes envidarão todos os esforços para resolver, através de acordo amigável, quaisquer dificuldades ou dúvidas que possam surgir relativamente à interpretação ou à aplicação da Convenção.
4 -As autoridades competentes dos Estados Contratantes poderão comunicar diretamente entre si, inclusivamente através de uma comissão mista constituída pelas próprias autoridades ou pelos seus representantes, a fim de alcançarem um acordo nos termos descritos nos números anteriores.

Artigo 26.º

Troca de informações

1 -As autoridades competentes dos Estados Contratantes trocarão entre si as informações que sejam previsivelmente relevantes para a aplicação do disposto na presente Convenção ou para a administração ou aplicação da legislação interna relativa a impostos de qualquer natureza ou denominação exigidos em benefício dos Estados Contratantes ou das suas subdivisões políticas ou administrativas ou autarquias locais, na medida em que a tributação nela prevista não seja contrária à presente Convenção.
A troca de informações não é restringida pelo disposto nos artigos 1.º e 2.º
2 -Quaisquer informações obtidas nos termos do n.º 1 por um Estado Contratante serão consideradas confidenciais do mesmo modo que as informações obtidas nos termos da legislação interna desse Estado e só poderão ser divulgadas às pessoas ou autoridades (incluindo tribunais e autoridades administrativas) encarregadas da liquidação ou cobrança dos impostos referidos no n.º 1, ou dos procedimentos declarativos ou executivos ou das decisões de recursos relativos a esses impostos, ou do seu controlo. Tais pessoas ou autoridades utilizarão as informações assim obtidas exclusivamente para esses fins. Essas informações poderão ser reveladas no decurso de audiências públicas de tribunais ou em decisões judiciais.
3 -O disposto nos n.os 1 e 2 não poderá em caso algum ser interpretado no sentido de impor a um Estado Contratante a obrigação de:
1. a)Tomar medidas administrativas contrárias à legislação e às práticas administrativas desse ou do outro Estado Contratante;
2. b)Fornecer informações que não possam ser obtidas nos termos da legislação ou no âmbito das práticas administrativas normais desse ou do outro Estado Contratante;
3. c)Transmitir informações reveladoras de sigilo comercial, industrial ou profissional, ou de processos comerciais, ou informações cuja revelação seja contrária à ordem pública.
4 -se forem solicitadas informações por um Estado Contratante em conformidade com o disposto no presente artigo, o outro Estado Contratante utilizará os poderes de que dispõe a fim de obter as informações solicitadas, mesmo que esse outro Estado não necessite de tais informações para os seus próprios fins fiscais. A obrigação constante da frase anterior está sujeita às limitações previstas no n.º 3, mas essas limitações não devem, em caso algum, ser interpretadas no sentido de permitir que um Estado Contratante se recuse a fornecer tais informações pelo simples facto de estas não se revestirem de interesse para si, no âmbito interno.
5 -O disposto no n.º 3 não pode em caso algum ser interpretado no sentido de permitir que um Estado Contratante se recuse a fornecer informações unicamente porque estas são detidas por um banco, outra instituição financeira, um mandatário ou por uma pessoa atuando na qualidade de agente ou fiduciário, ou porque essas informações se referem a direitos de propriedade de uma pessoa.

Artigo 27.º

Limitação dos benefícios

1 -Entende-se que as disposições da Convenção não serão interpretadas de modo a impedir a aplicação por um Estado Contratante das disposições antiabuso previstas na sua legislação interna.
2 -Entende-se que os benefícios previstos na Convenção não serão concedidos a um residente de um Estado Contratante que não seja o beneficiário efetivo dos rendimentos auferidos no outro Estado Contratante.
3 -As disposições da Convenção não serão aplicáveis, se o objetivo principal ou um dos objetivos principais de qualquer pessoa associada à criação ou à atribuição de um bem ou direito em relação ao qual os rendimentos são pagos for o de beneficiar das referidas disposições por meio dessa criação ou atribuição.

Artigo 28.º

Membros de missões diplomáticas e postos consulares

O disposto na presente Convenção não prejudica os privilégios fiscais de que beneficiem os membros de missões diplomáticas ou de postos consulares nos termos das regras gerais do direito internacional ou do disposto em acordos especiais.

Capítulo VI - Disposições finais

Artigo 29.º

Entrada em vigor

1 -A presente Convenção entrará em vigor no trigésimo dia após a data da receção da última das notificações, a efetuar por escrito e por via diplomática, a confirmar o cumprimento das formalidades internas necessárias para a sua entrada em vigor.
2 -O disposto na presente Convenção produz efeitos:
1. a)No Barém:
  1. i)Quanto aos impostos retidos na fonte, quando o seu facto gerador ocorra em ou depois de 1 de janeiro do ano civil imediatamente seguinte ao da entrada em vigor da presente Convenção;
  2. ii)Quanto aos demais impostos, relativamente aos rendimentos produzidos em qualquer ano fiscal com início em ou depois de 1 de janeiro do ano civil imediatamente seguinte ao da entrada em vigor da presente Convenção;
2. b)Em Portugal:
  1. i)Quanto aos impostos retidos na fonte, quando o seu facto gerador ocorra em ou depois de 1 de janeiro do ano civil imediatamente seguinte ao da entrada em vigor da presente Convenção;
  2. ii)Quanto aos demais impostos, relativamente aos rendimentos produzidos em qualquer ano fiscal com início em ou depois de 1 de janeiro do ano civil imediatamente seguinte ao da entrada em vigor da presente Convenção.

Artigo 30.º

Vigência e denúncia

1 -A presente Convenção permanecerá em vigor por um período de tempo indeterminado.
2 -Após o decurso de um período de cinco anos a partir da data da sua entrada em vigor, qualquer um dos Estados Contratantes poderá denunciar a presente Convenção. A denúncia deve ser notificada, por escrito e por via diplomática, antes do dia 30 de junho de qualquer ano civil.
3 -No caso de denúncia, a presente Convenção deixará de produzir efeitos:
1. a)No Barém:
  1. i)Quanto aos impostos retidos na fonte, quando o seu facto gerador ocorra em ou depois de 1 de janeiro do ano civil imediatamente seguinte ao ano especificado no aviso de denúncia;
  2. ii)Quanto aos demais impostos, relativamente aos rendimentos produzidos no ano fiscal com início em ou depois de 1 de janeiro do ano civil imediatamente seguinte ao ano especificado no aviso de denúncia;
2. b)Em Portugal:
  1. i)Quanto aos impostos retidos na fonte, quando o seu facto gerador ocorra em ou depois de 1 de janeiro do ano civil imediatamente seguinte ao ano especificado no aviso de denúncia;
  2. ii)Quanto aos demais impostos, relativamente aos rendimentos produzidos no ano fiscal com início em ou depois de 1 de janeiro do ano civil imediatamente seguinte ao ano especificado no aviso de denúncia.
    Em testemunho do qual, os signatários, devidamente autorizados para o efeito, assinaram a presente Convenção.
    Feito em Manama, aos 26 dias do mês de maio de 2015, em dois originais, nas línguas portuguesa, árabe e inglesa, sendo todos os textos igualmente válidos. Em caso de divergência de interpretação do texto da presente Convenção, prevalecerá o texto em língua inglesa.
    Pela República Portuguesa:
    (ver documento original)
    Pelo Reino do Barém:
    (ver documento original)
    CONVENTION BETWEEN THE PORTUGUESE REPUBLIC AND THE KINGDOM OF BAHRAIN FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.
    The Portuguese Republic and the Kingdom of Bahrain, desiring to conclude a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, have agreed as follows:
    CHAPTER I
    Scope of the Convention
    Article 1
    Persons covered
    This Convention shall apply to persons who are residents of one or both of the Contracting States.
    Article 2
    Taxes covered
1 -This Convention shall apply to taxes on income imposed on behalf of a Contracting State or of its political or administrative subdivisions or local authorities, irrespective of the manner in which they are levied.
2 -There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.
3 -The existing taxes to which this Convention shall apply are in particular:
1. a)In Bahrain, income tax payable under Amiri Decree No. 22/1979
  (hereinafter referred to as "Bahrain tax");
2. b)In Portugal:
  (i) The personal income tax (imposto sobre o rendimento das pessoas singulares - IRS);
  (ii) The corporate income tax (imposto sobre o rendimento das pessoas colectivas - IRC); and
  (iii) The surtaxes on corporate income tax (derramas);
  (hereinafter referred to as "Portuguese tax").
4 -The Convention shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes that have been made in their taxation laws.
CHAPTER II
Definitions
Article 3
General definitions
1 -For the purposes of this Convention, unless the context otherwise requires:
1. a)The term "Bahrain" means the territory of the Kingdom of Bahrain as well as the maritime areas, seabed and subsoil over which Bahrain exercises, in accordance with international law, sovereign rights and jurisdiction;
2. b)The term "Portugal" when used in a geographical sense comprises the territory of the Portuguese Republic in accordance with International Law and Portuguese legislation, including its territorial sea, as well as those maritime areas adjacent to the outer limit of the territorial sea, comprising the seabed and subsoil thereof, over which the Portuguese Republic exercises sovereign rights or jurisdiction;
3. c)The terms "a Contracting State" and "the other Contracting State" mean Bahrain or Portugal as the context requires;
4. d)The term "tax" means Bahrain tax or Portuguese tax, as the context requires;
5. e)The term "person" includes an individual, a company and any other body of persons;
6. f)The term "company" means any body corporate or any entity that is treated as a body corporate for tax purposes or any other entity constituted or recognised under the laws of one or other of the Contracting States as a body corporate;
7. g)The terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
8. h)The term "international traffic" means any transport by a ship or aircraft operated by an enterprise that has its place of effective management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;
9. i)The term "competent authority" means:
  (i) In Bahrain, the Minister of Finance or his authorised representative; and
  (ii) In Portugal: the Minister of Finance, the Director General of the Tax and Customs Authority or their authorised representative;
10. j)The term "national", in relation to a Contracting State, means:
  (i) Any individual possessing the nationality of that Contracting State; and
  (ii) Any legal person, partnership or association deriving its status as such from the laws in force in that Contracting State.
2 -As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.
Article 4
Resident
1 -For the purposes of this Convention, the term "resident of a Contracting State" means:
1. a)In the case of Bahrain, any individual who has a permanent home, his centre of vital interests, or habitual abode in Bahrain, and a company incorporated or having its place of effective management in Bahrain; and
2. b)In the case of Portugal, any person who, under the laws of the Portugal, is liable to tax therein by reason of his residence, place of management, place of incorporation or any other criterion of a similar nature;
but does not mean any person who is liable to tax in either Contracting State in respect only of income from sources in that Contracting State. The term "resident of a Contracting State" also includes that State and any political or administrative subdivision or local authority thereof.
2 -Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows:
1. a)He shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests);
2. b)If the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;
3. c)If he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national;
4. d)If he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.
3 -Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the State in which its place of effective management is situated.
Article 5
Permanent establishment
1 -For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.
2 -The term "permanent establishment" includes especially:
1. a)A place of management;
2. b)A branch;
3. c)An office;
4. d)A factory;
5. e)A workshop; and
6. f)A mine, an oil or gas well, a quarry or any other place of extraction of natural resources.
3 -A building site or construction or installation project constitutes a permanent establishment only if it lasts more than 12 months.
4 -Notwithstanding anything in this article, an enterprise shall be deemed to have a permanent establishment in a Contracting State and to carry on business through that permanent establishment in that State if, for a period of more than 90 days, it is directly engaged either in the exploration for or production of crude oil or other natural hydrocarbons arising from the ground in that State for its own account, or in refining crude oil owned by it or by others in its facilities in that State.
5 -Notwithstanding the preceding provisions of this article, the term "permanent establishment" shall be deemed not to include:
1. a)The use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;
2. b)The maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
3. c)The maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
4. d)The maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise;
5. e)The maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;
6. f)The maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs a) to e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.
6 -Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than an agent of an independent status to whom paragraph 7 applies - is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.
7 -An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.
8 -The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.
CHAPTER III
Taxation of Income
Article 6
Income from immovable property
1 -Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.
2 -The term "immovable property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture or forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships and aircraft shall not be regarded as immovable property.
3 -The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.
4 -The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.
5 -The foregoing provisions shall also apply to income from movable property, or income derived from services connected with the use or the right to use the immovable property, either of which, under the taxation law of the Contracting State in which the property is situated, is assimilated to income from immovable property.
Article 7
Business profits
1 -The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as are attributable to that permanent establishment.
2 -Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.
3 -In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.
4 -Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this article.
5 -No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
6 -For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.
7 -Where profits include items of income which are dealt with separately in other articles of this Convention, then the provisions of those articles shall not be affected by the provisions of this article.
Article 8
Shipping and air transport
1 -Profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
2 -If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.
3 -The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.
Article 9
Associated enterprises
1 -Where:
1. a)An enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State; or
2. b)The same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State;
and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.
2 -Where a Contracting State includes in the profits of an enterprise of that State - and taxes accordingly - profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State, if it agrees that the adjustment made by the first-mentioned State is justified both in principle and as regards the amount, shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the Contracting States shall if necessary consult each other.
Article 10
Dividends
1 -Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.
2 -However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed:
1. a)10 per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 25 per cent of the capital of the company paying the dividends;
2. b)15 per cent of the gross amount of dividends in all other cases.
  The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of these limitations. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.
3 -The term "dividends" as used in this article means income from shares, "jouissance" shares or "jouissance" rights, mining shares, founders' shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. The term also includes profits attributed under an arrangement for participation in profits ("associação em participação").
4 -The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of article 7 or article 14, as the case may be, shall apply.
5 -Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.
Article 11
Income from debt-claims
1 -Income from debt-claims arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2 -However, such income may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the beneficial owner of the income is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the income. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.
3 -The terms "income from debt-claims" or "income" as used in this article mean income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as income for the purpose of this article.
4 -The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the income, being a resident of a Contracting State, carries on business in the other Contracting State in which the income arises through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of article 7 or article 14, as the case may be, shall apply.
5 -Income shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the income, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the income is paid was incurred, and such income is borne by such permanent establishment or fixed base, then such income shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
6 -Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the income, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.
Article 12
Royalties
1 -Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2 -However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 5 per cent of the gross amount of the royalties. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.
3 -The term "royalties" as used in this article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.
4 -The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of article 7 or article 14, as the case may be, shall apply.
5 -Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or fixed base in connection with which the obligation to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
6 -Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.
Article 13
Capital gains
1 -Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in article 6 and situated in the other Contracting State may be taxed in that other State.
2 -Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State.
3 -Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
4 -Gains derived by a resident of a Contracting State from the alienation of shares or of a comparable interest deriving more than 50 percent of their value directly or indirectly from immovable property situated in the other Contracting State may be taxed in that other State.
5 -Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3 and 4, shall be taxable only in the Contracting State of which the alienator is a resident.
Article 14
Independent personal services
1 -Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other Contracting State but only so much of it as is attributable to that fixed base.
2 -The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 15
Dependent personal services
1 -Subject to the provisions of articles 16, 18, 19, 20 and 21, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.
2 -Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:
1. a)The recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal year concerned; and
2. b)The remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and
3. c)The remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
3 -Notwithstanding the preceding provisions of this article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise is situated.
Article 16
Directors' fees
Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or supervisory board or of another similar organ of a company which is a resident of the other Contracting State may be taxed in that other State.
Article 17
Artistes and sportsmen
1 -Notwithstanding the provisions of articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.
2 -Where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.
Article 18
Pensions
Subject to the provisions of paragraph 2 of article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State.
Article 19
Government service
1 -Salaries, wages and other similar remuneration paid by a Contracting State or a political or administrative subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State. However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:
1. a)Is a national of that State; or
2. b)Did not become a resident of that State solely for the purpose of rendering the services.
2 -Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration paid by, or out of funds created by, a Contracting State or a political or administrative subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State. However, such pensions and other similar remuneration shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State.
3 -The provisions of articles 15, 16, 17, and 18 shall apply to salaries, wages, pensions, and other similar remuneration in respect of services rendered in connection with a business carried on by a Contracting State or a political or administrative subdivision or a local authority thereof.
Article 20
Professors and researchers
An individual who is or was a resident of a Contracting State immediately before visiting the other Contracting State, solely for the purpose of teaching or scientific research at an university, college, school, or other similar educational or scientific research institution which is recognized as non-profitable by the Government of that other State, or under an official programme of cultural exchange, for a period not exceeding two years from the date of his first arrival in that other State, shall be exempt from tax in that other State on his remuneration for such teaching or research.
Article 21
Students
Payments which a student or business apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State.
Article 22
Other income
1 -Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing articles of this Convention shall be taxable only in that State.
2 -The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of article 7 or article 14, as the case may be, shall apply.
3 -Where, by reason of a special relationship between the person referred to in paragraph 1 and some other person, or between both of them and some third person, the amount of the income referred to in paragraph 1 exceeds the amount (if any) which would have been agreed upon between them in the absence of such a relationship, the provisions of this article shall apply only to the last mentioned amount. In such a case, the excess part of the income shall remain taxable according to the laws of each Contracting State, due regard being had to the other applicable provisions of this Convention.
CHAPTER IV
Methods for elimination of double taxation
Article 23
Elimination of double taxation
1 -In Bahrain double taxation shall be eliminated as follows:
Where a resident of Bahrain derives income which, in accordance with the provisions of this Convention, may be taxed in Portugal, Bahrain shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in Portugal. Such deduction shall not, however, exceed that part of the income tax as computed before the deduction is given, which is attributable to the income which may be taxed in Portugal.
2 -In Portugal double taxation shall be eliminated as follows:
Where a resident of Portugal derives income which, in accordance with the provisions of this Convention, may be taxed in Bahrain, Portugal shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in Bahrain. Such deduction shall not, however, exceed that part of the income tax as computed before the deduction is given, which is attributable to the income which may be taxed in Bahrain.
3 -Where in accordance with any provisions of this Convention income derived by a resident of a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.
CHAPTER V
Special provisions
Article 24
Non-discrimination
1 -Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected. This provision shall, notwithstanding the provisions of article 1, also apply to persons who are not residents of one or both of the Contracting States.
2 -The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.
3 -Except where the provisions of paragraph 1 of article 9, paragraph 6 of article 11, or paragraph 6 of article 12, apply, income from debt-claims, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State.
4 -Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.
5 -The provisions of this article shall, notwithstanding the provisions of article 2, apply to taxes of every kind and description.
Article 25
Mutual agreement procedure
1 -Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of article 24, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.
2 -The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.
3 -The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention.
4 -The competent authorities of the Contracting States may communicate with each other directly, including through a joint commission consisting of themselves or their representatives, for the purpose of reaching an agreement in the sense of the preceding paragraphs.
Article 26
Exchange of information
1 -The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political or administrative subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by articles 1 and 2.
2 -Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.
3 -In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation:
1. a)To carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
2. b)To supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;
3. c)To supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure of which would be contrary to public policy (ordre public).
4 -If information is requested by a Contracting State in accordance with this article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.
5 -In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.
Article 27
Limitation on benefits
1 -It is understood that the provisions of the Convention shall not be interpreted so as to prevent the application by a Contracting State of the anti-avoidance provisions provided for in its domestic law.
2 -It is understood that the benefits foreseen in the Convention shall not be granted to a resident of a Contracting State which is not the beneficial owner of the income derived from the other Contracting State.
3 -The provisions of the Convention shall not apply if it was the main purpose or one of the main purposes of any person concerned with the creation or assignment of the property or right in respect of which the income is paid to take advantage of those provisions by means of such creation or assignment.
Article 28
Members of diplomatic missions and consular posts
Nothing in this Convention shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.
CHAPTER VI
Final provisions
Article 29
Entry into force
1 -This Convention shall enter into force on the thirtieth day following the receipt of the latter notification, in writing and through diplomatic channels, stating that all the domestic procedures of both Contracting States necessary to that effect have been completed.
2 -The provisions of this Convention shall have effect:
1. a)In Bahrain:
  (i) In respect of taxes withheld at source, the fact giving rise to them appearing on or after the first day of January of the calendar year next following that in which this Convention enters into force;
  (ii) In respect of other taxes, as to income arising in any fiscal year beginning on or after the first day of January of the calendar year next following that in which this Convention enters into force;
2. b)In Portugal:
  (i) In respect of taxes withheld at source, the fact giving rise to them appearing on or after the first day of January of the calendar year next following that in which this Convention enters into force;
  (ii) In respect of other taxes, as to income arising in any fiscal year beginning on or after the first day of January of the calendar year next following that in which this Convention enters into force.
  Article 30
  Duration and termination
1 -This Convention shall remain in force for an indeterminate period of time.
2 -After the expiration of a period of five years from the date of its entry into force, either Contracting State may terminate this Convention. The termination shall be notified in writing and through diplomatic channels, before the thirtieth day of June of a calendar year.
3 -In the event of termination, this Convention shall cease to have effect:
1. a)In Bahrain:
  (i) In respect of taxes withheld at source, the fact giving rise to them appearing on or after the first day of January of the calendar year next following that specified in the notice of termination;
  (ii) In respect of other taxes, as to income arising in the fiscal year beginning on or after the first day of January of the calendar year next following that specified in the notice of termination;
2. b)In Portugal:
  (i) In respect of taxes withheld at source, the fact giving rise to them appearing on or after the first day of January of the calendar year next following that specified in the notice of termination;
  (ii) In respect of other taxes, as to income arising in the fiscal year beginning on or after the first day of January of the calendar year next following that specified in the notice of termination.
  In witness whereof the undersigned, duly authorized thereto, have signed this Convention.
  Done in duplicate at Manama this 26th day of May, 2015, in the Portuguese, Arabic and English languages, all texts being equally authentic. In case of any divergence of interpretation of the text of this Convention, the English text shall prevail.
  For the Portuguese Republic:
  (ver documento original)
  For the Kingdom of Bahrain:
  (ver documento original)

Artigo 30.º

Vigência e denúncia

1 -A presente Convenção permanecerá em vigor por um período de tempo indeterminado.
2 -Após o decurso de um período de cinco anos a partir da data da sua entrada em vigor, qualquer um dos Estados Contratantes poderá denunciar a presente Convenção. A denúncia deve ser notificada, por escrito e por via diplomática, antes do dia 30 de junho de qualquer ano civil.
3 -No caso de denúncia, a presente Convenção deixará de produzir efeitos:
1. a)No Barém:
  1. i)Quanto aos impostos retidos na fonte, quando o seu facto gerador ocorra em ou depois de 1 de janeiro do ano civil imediatamente seguinte ao ano especificado no aviso de denúncia;
  2. ii)Quanto aos demais impostos, relativamente aos rendimentos produzidos no ano fiscal com início em ou depois de 1 de janeiro do ano civil imediatamente seguinte ao ano especificado no aviso de denúncia;
2. b)Em Portugal:
  1. i)Quanto aos impostos retidos na fonte, quando o seu facto gerador ocorra em ou depois de 1 de janeiro do ano civil imediatamente seguinte ao ano especificado no aviso de denúncia;
  2. ii)Quanto aos demais impostos, relativamente aos rendimentos produzidos no ano fiscal com início em ou depois de 1 de janeiro do ano civil imediatamente seguinte ao ano especificado no aviso de denúncia.
    Em testemunho do qual, os signatários, devidamente autorizados para o efeito, assinaram a presente Convenção.
    Feito em Manama, aos 26 dias do mês de maio de 2015, em dois originais, nas línguas portuguesa, árabe e inglesa, sendo todos os textos igualmente válidos. Em caso de divergência de interpretação do texto da presente Convenção, prevalecerá o texto em língua inglesa.
    Pela República Portuguesa:
    (ver documento original)
    Pelo Reino do Barém:
    (ver documento original)
    CONVENTION BETWEEN THE PORTUGUESE REPUBLIC AND THE KINGDOM OF BAHRAIN FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.
    The Portuguese Republic and the Kingdom of Bahrain, desiring to conclude a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, have agreed as follows:
    CHAPTER I
    Scope of the Convention
    Article 1
    Persons covered
    This Convention shall apply to persons who are residents of one or both of the Contracting States.
    Article 2
    Taxes covered
1 -This Convention shall apply to taxes on income imposed on behalf of a Contracting State or of its political or administrative subdivisions or local authorities, irrespective of the manner in which they are levied.
2 -There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.
3 -The existing taxes to which this Convention shall apply are in particular:
1. a)In Bahrain, income tax payable under Amiri Decree No. 22/1979
  (hereinafter referred to as "Bahrain tax");
2. b)In Portugal:
  (i) The personal income tax (imposto sobre o rendimento das pessoas singulares - IRS);
  (ii) The corporate income tax (imposto sobre o rendimento das pessoas colectivas - IRC); and
  (iii) The surtaxes on corporate income tax (derramas);
  (hereinafter referred to as "Portuguese tax").
4 -The Convention shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes that have been made in their taxation laws.
CHAPTER II
Definitions
Article 3
General definitions
1 -For the purposes of this Convention, unless the context otherwise requires:
1. a)The term "Bahrain" means the territory of the Kingdom of Bahrain as well as the maritime areas, seabed and subsoil over which Bahrain exercises, in accordance with international law, sovereign rights and jurisdiction;
2. b)The term "Portugal" when used in a geographical sense comprises the territory of the Portuguese Republic in accordance with International Law and Portuguese legislation, including its territorial sea, as well as those maritime areas adjacent to the outer limit of the territorial sea, comprising the seabed and subsoil thereof, over which the Portuguese Republic exercises sovereign rights or jurisdiction;
3. c)The terms "a Contracting State" and "the other Contracting State" mean Bahrain or Portugal as the context requires;
4. d)The term "tax" means Bahrain tax or Portuguese tax, as the context requires;
5. e)The term "person" includes an individual, a company and any other body of persons;
6. f)The term "company" means any body corporate or any entity that is treated as a body corporate for tax purposes or any other entity constituted or recognised under the laws of one or other of the Contracting States as a body corporate;
7. g)The terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
8. h)The term "international traffic" means any transport by a ship or aircraft operated by an enterprise that has its place of effective management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;
9. i)The term "competent authority" means:
  (i) In Bahrain, the Minister of Finance or his authorised representative; and
  (ii) In Portugal: the Minister of Finance, the Director General of the Tax and Customs Authority or their authorised representative;
10. j)The term "national", in relation to a Contracting State, means:
  (i) Any individual possessing the nationality of that Contracting State; and
  (ii) Any legal person, partnership or association deriving its status as such from the laws in force in that Contracting State.
2 -As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.
Article 4
Resident
1 -For the purposes of this Convention, the term "resident of a Contracting State" means:
1. a)In the case of Bahrain, any individual who has a permanent home, his centre of vital interests, or habitual abode in Bahrain, and a company incorporated or having its place of effective management in Bahrain; and
2. b)In the case of Portugal, any person who, under the laws of the Portugal, is liable to tax therein by reason of his residence, place of management, place of incorporation or any other criterion of a similar nature;
but does not mean any person who is liable to tax in either Contracting State in respect only of income from sources in that Contracting State. The term "resident of a Contracting State" also includes that State and any political or administrative subdivision or local authority thereof.
2 -Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows:
1. a)He shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests);
2. b)If the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;
3. c)If he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national;
4. d)If he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.
3 -Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the State in which its place of effective management is situated.
Article 5
Permanent establishment
1 -For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.
2 -The term "permanent establishment" includes especially:
1. a)A place of management;
2. b)A branch;
3. c)An office;
4. d)A factory;
5. e)A workshop; and
6. f)A mine, an oil or gas well, a quarry or any other place of extraction of natural resources.
3 -A building site or construction or installation project constitutes a permanent establishment only if it lasts more than 12 months.
4 -Notwithstanding anything in this article, an enterprise shall be deemed to have a permanent establishment in a Contracting State and to carry on business through that permanent establishment in that State if, for a period of more than 90 days, it is directly engaged either in the exploration for or production of crude oil or other natural hydrocarbons arising from the ground in that State for its own account, or in refining crude oil owned by it or by others in its facilities in that State.
5 -Notwithstanding the preceding provisions of this article, the term "permanent establishment" shall be deemed not to include:
1. a)The use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;
2. b)The maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
3. c)The maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
4. d)The maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise;
5. e)The maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;
6. f)The maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs a) to e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.
6 -Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than an agent of an independent status to whom paragraph 7 applies - is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.
7 -An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.
8 -The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.
CHAPTER III
Taxation of Income
Article 6
Income from immovable property
1 -Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.
2 -The term "immovable property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture or forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships and aircraft shall not be regarded as immovable property.
3 -The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.
4 -The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.
5 -The foregoing provisions shall also apply to income from movable property, or income derived from services connected with the use or the right to use the immovable property, either of which, under the taxation law of the Contracting State in which the property is situated, is assimilated to income from immovable property.
Article 7
Business profits
1 -The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as are attributable to that permanent establishment.
2 -Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.
3 -In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.
4 -Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this article.
5 -No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
6 -For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.
7 -Where profits include items of income which are dealt with separately in other articles of this Convention, then the provisions of those articles shall not be affected by the provisions of this article.
Article 8
Shipping and air transport
1 -Profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
2 -If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.
3 -The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.
Article 9
Associated enterprises
1 -Where:
1. a)An enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State; or
2. b)The same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State;
and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.
2 -Where a Contracting State includes in the profits of an enterprise of that State - and taxes accordingly - profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State, if it agrees that the adjustment made by the first-mentioned State is justified both in principle and as regards the amount, shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the Contracting States shall if necessary consult each other.
Article 10
Dividends
1 -Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.
2 -However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed:
1. a)10 per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 25 per cent of the capital of the company paying the dividends;
2. b)15 per cent of the gross amount of dividends in all other cases.
  The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of these limitations. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.
3 -The term "dividends" as used in this article means income from shares, "jouissance" shares or "jouissance" rights, mining shares, founders' shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. The term also includes profits attributed under an arrangement for participation in profits ("associação em participação").
4 -The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of article 7 or article 14, as the case may be, shall apply.
5 -Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.
Article 11
Income from debt-claims
1 -Income from debt-claims arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2 -However, such income may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the beneficial owner of the income is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the income. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.
3 -The terms "income from debt-claims" or "income" as used in this article mean income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as income for the purpose of this article.
4 -The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the income, being a resident of a Contracting State, carries on business in the other Contracting State in which the income arises through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of article 7 or article 14, as the case may be, shall apply.
5 -Income shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the income, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the income is paid was incurred, and such income is borne by such permanent establishment or fixed base, then such income shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
6 -Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the income, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.
Article 12
Royalties
1 -Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2 -However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 5 per cent of the gross amount of the royalties. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.
3 -The term "royalties" as used in this article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.
4 -The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of article 7 or article 14, as the case may be, shall apply.
5 -Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or fixed base in connection with which the obligation to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
6 -Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.
Article 13
Capital gains
1 -Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in article 6 and situated in the other Contracting State may be taxed in that other State.
2 -Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State.
3 -Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
4 -Gains derived by a resident of a Contracting State from the alienation of shares or of a comparable interest deriving more than 50 percent of their value directly or indirectly from immovable property situated in the other Contracting State may be taxed in that other State.
5 -Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3 and 4, shall be taxable only in the Contracting State of which the alienator is a resident.
Article 14
Independent personal services
1 -Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other Contracting State but only so much of it as is attributable to that fixed base.
2 -The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 15
Dependent personal services
1 -Subject to the provisions of articles 16, 18, 19, 20 and 21, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.
2 -Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:
1. a)The recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal year concerned; and
2. b)The remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and
3. c)The remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
3 -Notwithstanding the preceding provisions of this article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise is situated.
Article 16
Directors' fees
Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or supervisory board or of another similar organ of a company which is a resident of the other Contracting State may be taxed in that other State.
Article 17
Artistes and sportsmen
1 -Notwithstanding the provisions of articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.
2 -Where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.
Article 18
Pensions
Subject to the provisions of paragraph 2 of article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State.
Article 19
Government service
1 -Salaries, wages and other similar remuneration paid by a Contracting State or a political or administrative subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State. However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:
1. a)Is a national of that State; or
2. b)Did not become a resident of that State solely for the purpose of rendering the services.
2 -Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration paid by, or out of funds created by, a Contracting State or a political or administrative subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State. However, such pensions and other similar remuneration shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State.
3 -The provisions of articles 15, 16, 17, and 18 shall apply to salaries, wages, pensions, and other similar remuneration in respect of services rendered in connection with a business carried on by a Contracting State or a political or administrative subdivision or a local authority thereof.
Article 20
Professors and researchers
An individual who is or was a resident of a Contracting State immediately before visiting the other Contracting State, solely for the purpose of teaching or scientific research at an university, college, school, or other similar educational or scientific research institution which is recognized as non-profitable by the Government of that other State, or under an official programme of cultural exchange, for a period not exceeding two years from the date of his first arrival in that other State, shall be exempt from tax in that other State on his remuneration for such teaching or research.
Article 21
Students
Payments which a student or business apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State.
Article 22
Other income
1 -Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing articles of this Convention shall be taxable only in that State.
2 -The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of article 7 or article 14, as the case may be, shall apply.
3 -Where, by reason of a special relationship between the person referred to in paragraph 1 and some other person, or between both of them and some third person, the amount of the income referred to in paragraph 1 exceeds the amount (if any) which would have been agreed upon between them in the absence of such a relationship, the provisions of this article shall apply only to the last mentioned amount. In such a case, the excess part of the income shall remain taxable according to the laws of each Contracting State, due regard being had to the other applicable provisions of this Convention.
CHAPTER IV
Methods for elimination of double taxation
Article 23
Elimination of double taxation
1 -In Bahrain double taxation shall be eliminated as follows:
Where a resident of Bahrain derives income which, in accordance with the provisions of this Convention, may be taxed in Portugal, Bahrain shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in Portugal. Such deduction shall not, however, exceed that part of the income tax as computed before the deduction is given, which is attributable to the income which may be taxed in Portugal.
2 -In Portugal double taxation shall be eliminated as follows:
Where a resident of Portugal derives income which, in accordance with the provisions of this Convention, may be taxed in Bahrain, Portugal shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in Bahrain. Such deduction shall not, however, exceed that part of the income tax as computed before the deduction is given, which is attributable to the income which may be taxed in Bahrain.
3 -Where in accordance with any provisions of this Convention income derived by a resident of a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.
CHAPTER V
Special provisions
Article 24
Non-discrimination
1 -Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected. This provision shall, notwithstanding the provisions of article 1, also apply to persons who are not residents of one or both of the Contracting States.
2 -The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.
3 -Except where the provisions of paragraph 1 of article 9, paragraph 6 of article 11, or paragraph 6 of article 12, apply, income from debt-claims, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State.
4 -Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.
5 -The provisions of this article shall, notwithstanding the provisions of article 2, apply to taxes of every kind and description.
Article 25
Mutual agreement procedure
1 -Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of article 24, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.
2 -The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.
3 -The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention.
4 -The competent authorities of the Contracting States may communicate with each other directly, including through a joint commission consisting of themselves or their representatives, for the purpose of reaching an agreement in the sense of the preceding paragraphs.
Article 26
Exchange of information
1 -The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political or administrative subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by articles 1 and 2.
2 -Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.
3 -In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation:
1. a)To carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
2. b)To supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;
3. c)To supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure of which would be contrary to public policy (ordre public).
4 -If information is requested by a Contracting State in accordance with this article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.
5 -In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.
Article 27
Limitation on benefits
1 -It is understood that the provisions of the Convention shall not be interpreted so as to prevent the application by a Contracting State of the anti-avoidance provisions provided for in its domestic law.
2 -It is understood that the benefits foreseen in the Convention shall not be granted to a resident of a Contracting State which is not the beneficial owner of the income derived from the other Contracting State.
3 -The provisions of the Convention shall not apply if it was the main purpose or one of the main purposes of any person concerned with the creation or assignment of the property or right in respect of which the income is paid to take advantage of those provisions by means of such creation or assignment.
Article 28
Members of diplomatic missions and consular posts
Nothing in this Convention shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.
CHAPTER VI
Final provisions
Article 29
Entry into force
1 -This Convention shall enter into force on the thirtieth day following the receipt of the latter notification, in writing and through diplomatic channels, stating that all the domestic procedures of both Contracting States necessary to that effect have been completed.
2 -The provisions of this Convention shall have effect:
1. a)In Bahrain:
  (i) In respect of taxes withheld at source, the fact giving rise to them appearing on or after the first day of January of the calendar year next following that in which this Convention enters into force;
  (ii) In respect of other taxes, as to income arising in any fiscal year beginning on or after the first day of January of the calendar year next following that in which this Convention enters into force;
2. b)In Portugal:
  (i) In respect of taxes withheld at source, the fact giving rise to them appearing on or after the first day of January of the calendar year next following that in which this Convention enters into force;
  (ii) In respect of other taxes, as to income arising in any fiscal year beginning on or after the first day of January of the calendar year next following that in which this Convention enters into force.
  Article 30
  Duration and termination
1 -This Convention shall remain in force for an indeterminate period of time.
2 -After the expiration of a period of five years from the date of its entry into force, either Contracting State may terminate this Convention. The termination shall be notified in writing and through diplomatic channels, before the thirtieth day of June of a calendar year.
3 -In the event of termination, this Convention shall cease to have effect:
1. a)In Bahrain:
  (i) In respect of taxes withheld at source, the fact giving rise to them appearing on or after the first day of January of the calendar year next following that specified in the notice of termination;
  (ii) In respect of other taxes, as to income arising in the fiscal year beginning on or after the first day of January of the calendar year next following that specified in the notice of termination;
2. b)In Portugal:
  (i) In respect of taxes withheld at source, the fact giving rise to them appearing on or after the first day of January of the calendar year next following that specified in the notice of termination;
  (ii) In respect of other taxes, as to income arising in the fiscal year beginning on or after the first day of January of the calendar year next following that specified in the notice of termination.
  In witness whereof the undersigned, duly authorized thereto, have signed this Convention.
  Done in duplicate at Manama this 26th day of May, 2015, in the Portuguese, Arabic and English languages, all texts being equally authentic. In case of any divergence of interpretation of the text of this Convention, the English text shall prevail.
  For the Portuguese Republic:
  (ver documento original)
  For the Kingdom of Bahrain:
  (ver documento original)